Pioneer to buy DoublePoint in $6.4 billion Permian deal
(Bloomberg) -- Pioneer Natural Resources Co. is buying DoublePoint Energy LLC in a deal valued at $6.4 billion, less than three months after completing its purchase of fellow shale driller Parsley Energy Inc. as it expands in the U.S. Permian Basin.
The deal is comprised of approximately 27.2 million shares of Pioneer common stock, $1 billion of cash and assumption of approximately $900 million of debt and liabilities, according to a statement from Pioneer. The transaction is expected to close in the second quarter. Bloomberg News reported earlier that the companies were close to an agreement.
Pioneer will increase its position to more than 1 million net acres through the deal, acquiring “primarily undrilled” new land.
“DoublePoint has amassed an impressive, high quality footprint in the Midland Basin,” Pioneer Chief Executive Officer Scott D. Sheffield said in the statement, referring to land within the larger Permian shale play. The deal will generate “significant value for our shareholders.”
Read more: https://www.mrt.com/business/oil/article/Pioneer-to-Buy-DoublePoint-for-6-4-Billion-Amid-16071424.php
(Midland Reporter-Telegram)